SUI Surges 18% After Announcing Partnership with WLFI – Is Sui the Next Solana?

Trading volumes have exploded by 46% already and currently account for 16.5% of SUI’s circulating supply.

“We are very excited to work with Sui and explore the innovative opportunities this collaboration presents,” commented the Web3 Ambassador for WLFI, Eric Trump – one of President Trump’s sons.

However, Arkham Intelligence’s website dedicated to tracking World Liberty Financial’s assets does not show that the DeFi protocol had any meaningful positions in SUI prior to the announcement.

Sui was launched in 2023 to compete with well-established smart contracts platforms like Ethereum (ETH) and Solana (SOL) by offering faster transaction speeds. In theory, the network can process up to 297,000 transactions per second or 5 times more than the Solana mainnet.

Last year, the price of SUI jumped by 430% as the network’s total value locked (TVL) rose from around $250 million to over $1.75 billion by the end of 2024. Meanwhile, VanEck, a large US-based asset management company, launched the first SUI-backed exchange-traded product (ETP).

Market Participants Seem Reluctant to Reverse Downtrend

SUI’s daily chart shows that today’s uptick found significant selling pressure after the token tagged its upper trend line.

SUI has been on a downtrend since the year started. Hence, today’s announcement, although encouraging, may not necessarily be considered sufficient for market participants to entirely ignore the market’s prevailing trend.

Market sentiment is still heavily depressed as indicated by the Fear and Greed Index. At 30, this gauge shows that investors are still fearful as macro conditions remain unfavorable.

The Fed’s reluctance to raise rates and Donald Trump’s hostilities against key partners like China, Mexico, and Canada are among the most relevant headwinds impacting the value of digital assets at the moment.

The $3.2 level remains the most critical resistance level that SUI needs to overcome to start reversing its downtrend. Momentum indicators have behaved erratically in the past few days in the daily chart as the MACD’s histogram has jumped up and down the zero line multiple times.

Meanwhile, the Relative Strength Index (RSI) has delivered short-lived buy and sell signals at least four times in the past week.

If the market sells off after this second attempt to push SUI to a higher high, the price could collapse once again to the $2.45 level as it did on Tuesday.

SUI Shows Bullish Structure in Hourly Chart

Sui’s hourly chart shows that late buyers could still have a chance to profit if the token resumes its rally in the second half of the American session.

Trading with the trend is typically the best decision and SUI was already on an uptrend before today’s jump.

The price action shows an ascending price channel had already been forming ahead of the WLFI announcement.

Hence, if this latest pullback was prompted by pre-set take-profit orders and spot selling, a long position opened at around $2.86 offers a risk-reward ratio of 1.5 if SUI retests its Sunday’s lower high in the next few hours.

Momentum indicators support this bullish outlook as the Relative Strength Index (RSI) has crossed above the signal line. Since it is currently reaching overbought levels, this would likely produce a pullback that gives late buyers the chance to enter the trade at a much more advantageous price. Meanwhile, the MACD shows steadily rising mum following the WLFI.